A photo montage of BoU Governor Emmanuel Tumusiime Mutebile, businessman Sudhir Ruparelia and Crane Bank

Bank of Uganda (BoU) top officials can only account for Shs180 billion and not Shs478.8 billion they claim to have spent on Crane Bank Limited (CBL) during its takeover that spanned from October 20, 2016 to January 27, 2017.
The balance of Shs290 cannot be accounted for or traced as it is reported to have siphoned by top officials at the Central bank.

Sources say the balance of Shs270 billion was siphoned out in the name of CBL by BoU officials in the names of Katimbo Mugwanya, Justine Bagyenda, Dr. Louis Kasekende, Benedict Sekabira as well as some lawyers were involved in this fraud.

BoU officials claim they started injecting in CBL liquidity support from October 21, 2016 up to January 9, 2017 but sources say officials at the central bank cannot account for all the money they claim to have spent. BoU sold assets and liabilities of CBL at Shs200 billion.

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According to the Auditor General John Muwanga, BoU officials said Shs466.6 billion was requested by the Statutory Manager and injected into CBL as liquidity support while the balance of

Shs12.2 billion was allegedly spent by BOU on other intervention activities such as compilation of inventory report, forensic review and investigation, IT support and legal consultancies.

The Shs12.2 billion was paid in different amounts to companies such as PwC (Shs345.087 million, Shs936.495 million), KPMG (Shs428.89 million, Shs190.480 million, 302.25 million). MMAKS Advocates was paid Shs914.27 million, Semaganda & Associates (Shs133.85 million), Meridian Surveyors (Shs21.5 million), Cohen & Collins Solicitors & Notaries (Shs17.43 million) and Ultimate Security (Shs12.204 million). Shs5.12 billion and Shs720.41 million were paid as terminal benefits to CBL workers and facilitation).

“In assessing the above, I was unable to examine CBL operations during Statutory Management to determine that the funds injected reflected the liquidity shortfall at the time.

Although I was able to review and verify the approved requests for liquidity support together with the supporting schedules, I did not review payments made by CBL to the bonafide account holders and/or respective beneficiaries using the injected funds,” Muwanga says in special audit report of BoU on seven defunct banks.

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